Apple Inc (AAPL)

AAPL has been on a solid uptrend since the summer of 2025, and it rose into early December while most large-cap tech names were flat into that month. There was some profit-taking in December on names that had a strong 2025, and AAPL was likely one of those names. Some analysts cited valuation concerns early this year, and that created some headwinds for the name, and there was some general rotation to start the year as small-caps outperformed mega-cap tech stocks. Its earnings are later this week, and we think that any news on its AI strategy, China smartphone demand, or growth in its services segment can be potential catalysts for the name. We like the name over a long-term horizon, but it has evolved into more of a defensive name, versus a large-cap tech growth stock.
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It reports Thursday. The stock is down the last 8 weeks. Apple needs memory storage, but prices are now high, so they have to pay up for it. He still thinks: own Apple, don't trade it. But if Apple guides lower, the share decline isn't over.

Starting to see some profit-taking, at least that's what it looks like so far. What to watch for technically is $250, a nice round number and the previous peak. If it starts taking out $250, and falling below $245, that's a sign of deeper trouble. Right now, still looks to be in a correction.

For new $$, wait to make sure it doesn't keep trending down. There's always a battle between picking up a bargain and catching a falling knife.

He's betting it will underperform in 2026, and wishes he owned no shares. It trades at 33x forward PE and projected to grow 8% EPS in coming year. Maybe 12% if they get AI right. Not impressed.

Their playbook is to sit and watch a new product in the market, then see if they can perfect it without spending too much capex. This is what is happening with AI. Apple, Alphabet and more recently Amazon have momentum among the Mag 7. He expects a strong 2026 for Apple when they reveal their AI plans.

Buys back a lot of shares, reducing shares by 33% since end-2015. Over 10 years, shares are up nearly 90%. Own this and don't trade it.

It is finally showing some growth and is doing better in China. It is fully valued at over 30X earnings. The new phone is very thin and there is talk that they're going to come up with a foldable version. Samsung has that too. Single digit growth. Wait for a pullback.

They have a good core business in phone. The PE is a little high, but the company isn't going away anytime soon.

Apple is poised for a pullback. The recent executive departures won't move the name. Apple remains in pole position in consumer products. Apple execs leaving for other companies to build AI-related hardware is risky that will see only a 5% chance of success. As long as Tim Cook stays, earnings will be good and the stock will continue to move higher.

With all this fear about overspending on data centres, Apple looks smart for sitting on its hands. Why should Apple shell out billions to build this infrastructure when any AI company would happily pay them to be the default chatabot. Shares were up over 3% in November and 13% this year with a big multiple expansion. 

It's like a utility stock. Revenue and earnings growth have been mild or steady the last 5 years. Good balance sheet. You're paying for the brand. Eventually, they will deliver Apple Intelligence, but they always lag in their technology.

The stock is resilient and up, despite not delivering Apple Intelligence yet. 

Apple may be the biggest beneficiary of Google's Gemini 3 success, because Apple paid big money for Google to be the default search engine on its phones.